Facebook falls 10% below offer price

Facebook shares dropped more than 11 percent to hit a session low of $33.91 in early trading on Monday when Nasdaq opened. This is the first day of trade after the company got listed on the exchange on Friday. This is also the first day when the company's shares will no longer be supported by the IPO's lead underwriter Morgan Stanley.

Facebook listed in Nasdaq with huge enthusiasm and was the most heavily traded IPO of all time.

AP

Investor enthusiasm was high as the company got valued at more than $100 billion and went on to become the biggest internet IPO of all time. But not everyone was sure that the valuation could be sustained for a company that was already witnessing slowing growth.

Even on the opening day the IPO faced technical glitches which will now reviewed by the Securities and Exchange Commission. A falling share price forced lead underwriter Morgan Stanley to defend the $38 price level by purchasing shares on the open market, reports Reuters.

"It was just a poorly done deal and it just so happens to be the biggest deal ever for Nasdaq and they pooched it, that's the bottom line here," told Joe Saluzzi, co-manager of trading at Themis Trading in Chatham, New Jersey to Reuters.